MUMBAI: full service transporter Vistara will continue to cut staff salaries until March, but will end the three-day unpaid leave for pilots effective January 1.
For pilots, the carrier will implement a 10 percent pay cut while at the same time increasing their basic monthly flight allowance to 40 hours from 20 hours at present, a Vistara spokesperson said Thursday in a statement to PTI.
Vistara, the joint venture between Tata Group and Singapore Airlines, announced on June 30 a pay cut of nearly 40 percent of the total workforce through December 31, in order to address the low cash flow in a context of low passenger demand following the pandemic.
For pilots, who had been receiving basic flight allowance since April, which is a fixed component of salary, for 70 hours per month, the allowance was reduced to 20 hours until December 31.
In September, the airline also introduced a three-day “unpaid leave” for pilots.
“The pay reduction program at Vistara will continue to be in effect until March 31, 2021, under which the CEO of Vistara will continue to take the maximum 25 percent reduction in monthly pay,” the door said. -speak.
The spokesperson added that senior airline executives, including senior management, will be affected by a 15 percent cut in monthly pay; while for those at the intermediate, intermediate and intermediate levels, the reduction will be 10 percent.
“Covid-19 continues to have an industry-wide impact on business despite improving operating environment. Although we are currently deploying nearly 70% of our pre-Covid capacity- 19, our operating income is still very far from normal, ”the spokesperson for Vistara said in the statement.
To this end, the airline continues to take several measures to control operational spending, including containing personnel costs, the spokesperson added.
Employees at subordinate levels, whose monthly cost to the company is Rs 50,000 or more, will be affected by a monthly pay cut of 5%, Vistara said.
<< For pilots, a monthly salary reduction of 10% will apply. However, their basic monthly flight allowance will be reduced from the current 20 hours to 40 hours. The program does not affect nearly 60% of Vistara's staff at lower levels, "the spokesperson added.
The aviation industry continues to face low passenger volumes and travel restrictions from various countries. Even though scheduled international trade operations have remained suspended since March 23, domestic demand, although having experienced a sequential increase since the resumption of services from May, has not yet reached the level before Covid-19 .
Domestic passenger volumes in November were nearly half of the November 2019 level of 52.71 lakh passengers, according to data from the Civil Aviation Authority. However, month over month, domestic demand rose 22% from October 2020, the data showed.
“Our approach of pursuing measured growth in business puts the company in the position of being able to continue saving all jobs and implementing a rational reduction in personnel costs, even if this decision has always been the harder for the board and management of the company, “Vistara says.
The airline said it plans to scale up domestic operations in line with government guidelines and remain operationally ready to operate more international flights whenever regular operations are allowed to resume.
Earlier this month, the Civil Aviation Ministry allowed airlines to increase capacity to 80% from 70% earlier.
“Our long-term plans to expand the fleet and network inside and outside India remain unchanged,” the spokesperson said.